Manufacturing, services firms more upbeat but cautious about Q4 outlook: Survey

Firms cite overseas price competition, geopolitical tensions, tariffs as challenges

- Benjamin Lim Correspondent

A clean room at Stats ChipPAC in Yishun. Among manufacturers here, the electronics cluster is the most optimistic. In particular, the semiconductors segment projects production to increase to meet sustained demand from artificial intelligence-related markets.

(ST FILE PHOTO)

Business sentiment in the manufacturing and services sectors continues to be more upbeat about the next six months, but firms remain largely cautious amid continued global economic uncertainty.

About 406 manufacturing firms and 1,500 companies in the services sector were surveyed by the Government.

Of the polled manufacturing firms, a weighted 23 per cent are optimistic about business conditions from October to March 2026, according to the Business Expectations of the Manufacturing Sector survey released by the Economic Development Board on Oct 31.

This was up from 10 per cent in the previous survey released on July 31 for the third quarter.

A net weighted balance of 7 per cent of manufacturers expected their output to increase from the third to the fourth quarter of 2025, up from 2 per cent in the previous survey.

Firms cited overseas price competition, as well as ongoing geopolitical tensions and tariffs, as the two biggest challenges to securing export orders.